Wrapped assets · 6 min read
Wrapped Bitcoin on Monad: What to Know
How bitcoin can be represented on Monad, the difference between custodial and decentralized designs, and the risks of each.
Bringing BTC to an EVM chain
Bitcoin cannot run Monad smart contracts directly. To use BTC value on Monad, someone holds the bitcoin and an equivalent token is issued on Monad. That token can then trade, lend, or provide liquidity like any ERC-20.
Custodial versus decentralized
Custodial designs rely on a company or consortium to hold the bitcoin and publish attestations. Decentralized designs use threshold signatures or collateralized operators. Neither removes risk; they move it to different places.
Questions to ask
Who holds the BTC? Is there a public proof of reserves? How does redemption work, and is it available to ordinary holders or only approved merchants? Multiple bitcoin representations may exist on Monad; they are not interchangeable.
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